Which of the Following Statements Relating to the Composite Rate

question 56

Multiple Choice

Which of the following statements relating to the composite rate depreciation approach are correct?
I. The general asset mix of a functional group of assets is assumed to be the same through new assets are added and old assets are sold.
II. Additions and retirements are assumed to occur uniformly throughout the year.
III. The method is often used by business entities with many similar assets in one class.
IV. Profits and losses on disposal of assets are debited/credited to the accumulated depreciation account so no losses or profits on disposal are recorded.

• A) I and IV only
• B) II, III and IV only
• C) I, III and IV only
• D) I, II, III and IV

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Definitions:

Lawrence Kohlberg

A psychologist known for his theory of moral development, which proposes that moral reasoning progresses through a series of stages.

Moral Reasoning

The process by which an individual makes decisions about what is right and wrong, often based on ethics, values, and societal norms.

Personal Moral Principles

A set of values and ethical standards that an individual holds as guides for their behavior and decision-making.

Law and Order

A phrase referring to the strict enforcement of laws and the maintenance of public order and safety.